Gold finished the week up sharply on Friday. The week began at $1275 per oz. and is trading late on Friday above the $1285 resistance price at $1287 per oz a 10-point gain on Friday. This is mainly due to the weaker U.S dollar on Friday. First quarter GDP data reported early on Friday at 3.2% and beat handily the expectation of 2.1%. Usually this might strengthen the U.S dollar, however, there was a significant slowdown in inflation which offset the big GDP numbers. In the end, Gold is very sensitive to the movements in the U.S dollar and the broad-based weakness in the currency, provided a nice boost to the price of precious metals and Gold in particular. If next week we can see prices break above the $1290 per oz level, the next resistance level is above 1310 per oz. If Gold can’t sustain prices in the high $1,280’s price could drop to significant support down around $1270 per oz.
Silver will close positive for the week, but just barely, opening at 14.98 per oz and closing just above $15 per oz. While there is a small weekly gain, silver has been up and down all week on a very volatile roller coaster ride, moving all the way down to $14.80 per oz before recovering with a strong Friday, like Gold’s strong Friday gain. Overall, Silver is still in a sideways choppy movement. The $15.00 level continues to offer strong resistance. If Silver can close above this level, the is very bullish in the longer term, perhaps setting up a move to $15.20, $15.60 or even as high as $16 per oz over the next few months.
OIL has been moving down the last few days, but on Friday gapped down on the open and dropped sharply about 3% on President Trump’s tweet on OPEC and rising prices. The week’s high was $67.93, a new high for the year, but then moved down to a Friday low of around $64 per barrel in late Friday trading after President Trump said that he had told OPEC that they need to bring gas prices down. The President is expecting Saudi Arabia and other OPEC countries to make up for the loss of production out of IRAN due to renewed oil sanctions. If production stays ahead of demand, maybe we have seen the top of oil prices for the near future, we shall see.
About Bill Poulos
Bill Poulos is an American investor, published author, financial educator, and retired automotive executive. He was employed with General Motors for over 30 years. He retired in 2001, when Bill and his son, Gregory Poulos, founded Profits Run, Inc. The company provides publications, courses, coaching, and software on investment practices. Bill Poulos and Profits Run teaches individuals investment strategies for managing their wealth while minimizing risk. Profits Run has helped over 100,000 people manage their wealth. Read Profits Run reviews to find out more about what they can help you with. Bill Poulos stays abreast of current market trends and contributes to online news sources. Bill married his high school sweetheart in 1969. They live in Wixom, Michigan.